LAS VEGAS, NV – After the so-called pop of the housing bubble in the mid-2000’s and subsequent crash of the real estate market, the last year or so has seen a resurgence the likes of which have not been witnessed in quite some time, with a spike in the local Southern Nevada economy fueled by new businesses and jobs taking up residence in the region, in addition to rapidly-rising demand for housing and rental units. As always, demand sets ever-increasing value and prices; according to recently-published reports, property prices continued to climb as Las Vegas moves into a very real house shortage.
The report reveals that 4,297 properties – consisting of condominiums, townhomes, and single family homes – sold for premium prices on the open Las Vegas market during May of 2017. The median price range of houses that sold in the region during that month was $250,000; this represents a 3.3 percent increase from April ($249,000) and an increase of 13.3 percent from the same period of time one year ago.
The rise in prices and the heavy activity on the sales front, of course, only spells good tidings for the recovery of the Las Vegas economy and real estate market, especially if you’re an investor; however, it can also represent a significant hurdle for those on a budget looking to purchase a home for the first time in order to start a family. As an example, a recent article chronicled the efforts of Kierra Jemison, a single mother of four children, as she attempted to navigate the Las Vegas housing landscape for an affordable home for her family after being forced out of a previous rental. With a very strict budget – Jemison is looking for something with four bedrooms to the tune of $200,000 – she set out with a sense of hopeful anticipation, but soon found herself frustrated and demoralized after 30 house tours and five offers saw her no closer to her goal, as she found herself outbid at every turn in an incredibly competitive marketplace.
Very quickly, prospective first-time homeowners in Southern Nevada are finding it harder and harder to find a property under the $300,000 mark. New construction, however, looks to address the lack of housing and rental options; Lake Las Vegas, up until recently, was considered a lackluster investment in terms of real estate, yet it has recently seen a number of housing projects in the works, with as many as six developments stated to be completed and entered into the marketplace within the next year. However, while this will certainly help to address the scarcity of real estate options – Las Vegas currently has a two-month supply of homes on the market, whereas a balanced market typically has a six-month supply – the subsequent prices of these new developments stand to mirror the current marketplace. For example, one of the Lake Las Vegas developments in the works – CalAtlantic Homes Regatta Pointe – will feature homes in the mid-$300,000 range.
In the meantime, prospective homeowners on a budget, such as Kierra Jemison, will have to continue to fight it out with other like-minded individuals in a marketplace that is currently seeing explosive growth and expansion; however, with big-money investors in droves setting up shop in the region and real estate prices continuing to climb ever-higher, competition for affordable housing options will remain fierce.
If you’re looking to purchase a home here in the Las Vegas Valley, please feel free to give us a call at 702.376.7379 so we can answer any questions you may have.